Question

Difference between C.I. and S.I. is 45000 on a principal P. Rate is 12% p.a. and Time is 5 years.
Find the principal when interest is compounded annually

Answer 1

SI=PRT/100

=45000*12*5/100

=2700

for CI,

A=P(1+R/100)^T

=45000(1+12/100)^5

after finding A

CI=A-P

thetefore,

difference=CI-SI